Press Room
Chancellor launches pre-emptive strike on 50% tax payers
Alistair Darling has signalled his intention to clamp down on
tax avoidance schemes, including those designed to combat the 50%
rate for high earners, with plans to extend the requirements for
tax advisers to inform HM Revenue & Customs of clients who
adopt certain planning measures says leading business and financial
advisers Grant Thornton
Francesca Lagerberg, Head of Tax at Grant Thornton said:
"following the short consultation period, if the proposed measures
are adopted, tax planners will periodically throughout the year
have to register lists of clients who are taking up certain
arrangements, giving HMRC an early indication of taxpayers'
activities.
"Our concern is that this is to be introduced in conjunction
with a change in the definition of what is a 'tax avoidance scheme'
for this purpose which may catch some fairly benign tax planning
arrangements, introducing further uncertainty for high earners who
simply wish to plan their affairs within a complex tax system.
"In conjunction with the 50% tax rate, the 1% increase in
National Insurance from 6 April 2011 and the removal of higher rate
pension relief, those wealthy individuals who are internationally
mobile are now likely to start booking their flights out of the
UK.
"If the aim is to frighten high earners then the Government has
succeeded", Lagerberg concluded.
For Pre Budget Report media queries please contact:
Francesca Lagerberg, Head of Tax,Grant Thornton 07812 138
364
Suvra Datta, Grant Thornton Press Office, 0207 728 2375 or via
email on suvra.datta@gtuk.com